First Screen
From “Preparing Effective Business Plans” by Bruce R. Barringer
Part 1: Strength of Business Idea
For each item, circle the most appropriate answer and make note of the (-1), (0), or (+1)
score.
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1.
Extent to which the
idea:
• Takes advantage of
Weak
Moderate
Strong
2.
Timeliness of entry to
market
Not timely
Moderately timely
Very timely
3.
Extent to which the
Low
Medium
High
4.
Extent to which the
customer is satisfied
Very satisfied
Moderately satisfied
Not very satisfied
or ambivalent
5.
Degree to which the
idea requires
customers to change
their basic practices
or behaviors
Substantial changes
required
Moderate changes
required
Small to no changes
required
Part 2: Industry-Related Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1.
Number of
competitors
Many
Few
None
2.
Stage of industry life
cycle
Maturity phase or
decline phase
Growth phase
Emergence phase
3.
Growth rate of
industry
Little or no growth
Moderate growth
Strong growth
4.
Importance of
“Ambivalent”
“Would like to have”
“Must have”
5.
Industry operating
margins
Low
Moderate
High
Part 3: Target Market and Customer-Related Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1.
Identification of
Difficult to identify
May be able to identify
Identified
2.
Ability to create
Unable to create
May or may not be able
Can create
3.
Purchasing power of
customers
Low
Moderate
High
4.
Ease of making
Low
Moderate
High
5.
Growth potential of
target market
Low
Moderate
High
Part 4: Founder- (or Founders-) Related Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1.
Founder or founders
No experience
Moderate experience
Experienced
2.
the proposed new
Founder or founders
skills as they relate to
No skills
Moderate skills
Skilled
3.
Extent of the founder
or founders
None
Moderate
Extensive
4.
Extent to which the
proposed new venture
Weak
Moderate
Strong
5.
Likelihood that a
team can be put
together to launch
and grow the new
venture
Unlikely
Moderately likely
Very likely
Part 5: Financial Issues
Low Potential (-1)
Moderate Potential (0)
High Potential (+1)
1.
Initial capital
investment
High
Moderate
Low
2.
Number of revenue
One
Two to three
More than three
3.
Time to break even
More than two
years
One to two years
Less than one year
4.
Financial
Weak
Modest
Strong
5.
Ability to fund initial
product (or service)
development and/or
initial startup
expenses from
Low
Moderate
High
Overall Potential
Each part has five items. Scores will range from -5 to +5 for each part. The score is a
guide—there is no established rule-of-thumb for the numerical score that equates to high
potential, moderate potential, or low potential for each part. The ranking is a judgment
call.
Score
(-5 to +1)
Overall Potential of the
Business Idea Based on
Each Part
Suggestions for
Improving the
Potential
Part 1:
Strength of Business
Idea
High potential
Moderate potential
Low potential
High potential
Moderate potential
Low potential
Target Market and
Customer-Related
Issues
High potential
Moderate potential
Low potential
High potential
Moderate potential
Low potential
High potential
Moderate potential
Low potential
Part 4:
Founder- (or
Founders-) Related
Issues
High potential
Moderate potential
Low potential
Summary—briefly summarize your justification for your overall assessment: